Brown and Obama stand shoulder to shoulder

The President and the Prime Minister stood shoulder to shoulder, both as friends and political allies, on the eve of the most significant talks in London for a generation.

Mr Obama, who was clapped into No 10 by staff and officials on his arrival, emerged after two hours of talks with Mr Brown to give strong signals that his relationship with "Gordon" had grown markedly closer.

Outside their cosy talks, parts of London were in security lockdown as protesters staged a series of demonstrations.

Inside, however, the mood could not have been more friendly. President Obama spoke warmly of the "special relationship" between Britain and America - a term that had seemed to fall out of favour at the new White House - and declared his liking for the British people, the "kinship of ideals" the two countries share and his respect for the "decency and civility" of the Queen. During a press conference Mr Obama reacted coolly to suggestions that America was to blame for the credit crunch. "At this point I am less interested in identifying blame than in fixing the problem," he said. There had been mistakes and regulatory failings in the US and in Britain and Europe, he said.

While wife Michelle went with Sarah Brown to visit a cancer centre, Mr Obama revealed that they had met the Brown children John and Fraser and chatted with the boys about dinosaurs.

The President's words went beyond the routine praise for a summit host but, more significantly, the two leaders dramatically emerged as allies against French president Nicolas Sarkozy who was, as usual, making a noise from the sidelines.

It was deftly done, but President Obama clearly slapped down the French leader's threat to walk out of the summit unless there was tough action agreed against bad bankers.

"The notion that somehow there are those pushing for regulation and those resisting regulation is belied by the facts," said Mr Obama, in his understated way.

He suggested that some people might feel a need to create more excitement by inventing rifts that did not exist. "The separation between the various parties has been vastly over-stated," he added.

Mr Brown, who rarely displays enjoyment in public, could not resist a mocking jibe at his Parisian counterpart. "I'm absolutely confident that President Sarkozy will not only be here for the first course at our dinner, but still be sitting as we complete our dinner this evening," he joked. The two leaders also united against critics of their plans to boost spending to beat the recession, such as German leader Angela Merkel,

That was just "arguing at the margins" said Mr Obama who dismissed criticism of massive borrowing plans by quoting the advice he gives to youngsters worrying about student loans. "Don't short-change the future because of fear of the present," said the President. He said the world should not rely on the voracious US consumer market to drive recovery. "It cannot just be the United States that's the engine room - everybody is going to have to pick up the pace."

It was the best possible start to a summit in which Mr Brown has staked his hopes for both a world economic boost and a turning point for his own battered domestic leadership.

Former ambassador to Washington Sir Christopher Meyer said later that an "effusive" Mr Obama had given Mr Brown "everything he wanted".

Mr Brown had talked down the chances of a big summit success in recent weeks. But he sounded more confident, proposing action on the banks and a $100 billion boost for the IMF finances.

"We are within a few hours, I think, of agreeing a global plan for economic recovery and reform," he declared.